Lanxess results

The good 2018 gives impetus to the beginning of 2019

Marketing - Wednesday, 27 March 2019

Specialty chemicals company Lanxess closed its fiscal year with a strong result that bodes well for the year that has just begun. In 2018, group sales rose by 10.2% from 6.53 billion euros in the previous year to 7.197 billion euros. At 431 million euros, net income was considerably higher than the previous year’s figure of 87 million euros. This was due to the year-on-year improvement in the operating result as well as effects from the sale of the 50% stake in Arlanxeo. Moreover, the previous year’s net income was reduced by one-off expenses.

“Despite rising economic headwind, we delivered on our promises. We made very good progress strategically and operationally: Lanxess now has a very clear focus on specialty chemicals. Today, we are more profitable, more stable and more competitive than ever - and that is paying off”, said Matthias Zachert, Chairman of the Board of Management of Lanxess.

The good operating result was driven in particular by the operating strength of the Advanced Intermediates, Specialty Additives and Engineering Materials segments as well as the integration of Chemtura and the phosphorus additives business acquired from Solvay.

Operating business in the Advanced Intermediates segment performed strongly in fiscal year 2018 despite a persistently challenging agriculture market. Sales amounted to 2.207 billion euros, up 11.7% on the previous year’s figure of 1.975 billion euros. In the Specialty Additives segment, sales and the operating result both increased significantly as a result of the successful integration of the Chemtura and Solvay businesses. Sales amounted to 1.98 billion euros, up 22.9% on the previous year’s figure of 1.611 billion euros.

In the Performance Chemicals segment, sales and the operating result fell short of the strong previous year due in particular to weak development in the leather and construction industries. Sales fell by 6.3% from 1.439 billion euros to 1.349 billion euros. The Engineering Materials segment considerably increased both sales and the operating result on the basis of the profitable business with plastics for lightweight construction. The urethanes business that was taken over as part of the Chemtura acquisition also made a positive contribution to the result. Sales rose by 15.4% from 1.366 billion euros to 1.576 billion euros.

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